Hall v. Watson

WOOD, J.

Action for termination of partnership and for an accounting. Judgment was in favor of plaintiff for $438.20. He appeals therefrom upon the ground that the court erred in not requiring defendants to account for profits acquired from the operation of the business during the period of time from the dissolution to the final winding up of the partnership affairs.

The appeal is upon the judgment roll. The court found as follows: About December 19, 1943, plaintiff and defendants entered into a partnership agreement for the purpose of purchasing and operating a cafe. They were to be equal partners, each owning a third, except that plaintiff was to receive $75 per week for operating and managing the business, and defendants were not required to devote any time thereto. All were to contribute equally in the purchase of the business, except that defendants were to advance plaintiff’s portion and he agreed to repay such advances from his share of the profits. There was no definite period of time for the existence of the partnership. On December 19, 1943, the partners purchased the cafe, together with the good will, trade name, fixtures, lease and other assets, paying therefor $3,000, and thereafter they paid $695.70 for additional assets, making a total investment of $3,695.70. The defendants contributed all of said sum, the plaintiff agreeing to pay his one-third thereof from his profits. They commenced operating the cafe on December 19, 1943, and plaintiff received $75 per week for his services until January 17, 1944, at which time the defendants dissolved the partnership and thereafter continued to operate the business. The court further found that from the commencement of the partnership until January 17, 1944, the business was operated at a loss of $185.40, and plaintiff was indebted to the partnership for one-third thereof, being the

[737]

sum of $61.80; that on January 17, 1944, the assets of the partnership had appreciated in value $1,500 more than the amount of the purchase price, making the value of the assets $5,195.70 on January 17, 1944. That plaintiff was entitled to one-third thereof, that is, $1,731.90. That from said sum there should be deducted $1,231.90, the amount advanced by defendants for plaintiff’s part of the purchase price, and the sum of $61.80, his share of the losses.

The court concluded that defendants were indebted to plaintiff in the sum of $438.20, and that plaintiff was not entitled .to an accounting for profits arising from the use of the assets after January 17, 1944.